How Do I Close ESIC and PF Codes for a Closed Unit in Rajasthan? Seeking Advice from Seniors

Dear Seniors,

Please give your kind suggestions for ESIC & PF wind-up formalities. I am working in a mining company in Rajasthan. One of our units has been closed for about 4 years. We had someone taking care of the property up to this April. Now, we want to close both the ESIC and PF codes (separate codes for the said unit) and do not want to continue with the compliance requirements.

Please help me and provide detailed advice for the same.

Thanks

As far as ESI Code no. is concerned, you can approach the concerned Regional office along with all documentary evidence of your closure of the unit, such as surrendering of license, electricity connection, and closure intimation to the different departments (Inspector of Factories, etc.).

Please approach the Regional Office with up-to-date compliance particulars and request them to order the concerned SSO to conduct the closure inspection of your unit to confirm the closure.

Hope this will solve your problem. Thank you.

Dear VSP gaaru,

What you said is okay in the case of a manufacturing unit. What are the steps to be taken if the unit is a non-manufacturing unit, especially if it is operating in rented premises?

ESI authorities mention that closure of a bank account or vacation of the premises cannot be considered primary evidence as a bank account can be closed and opened elsewhere, and premises can be vacated and opened elsewhere. Even if the inspector provides a closure report to the ESI regional office, the concerned officer tends to keep the file pending without official communication on the acceptance of the closure report. What are your suggestions to address this issue, and do you have any comments?

Regards, RAmesh

Dear Rajesh,

Surrendering PF code or ESI registration is similar to obtaining code or registration. You have to approach the concerned commissioner, submit an application, and follow the procedure.

However, as you mentioned your 'one of the unit' has closed, or the entire organization? I'm not sure if your organization has obtained separate codes/registrations for each unit. Is that the case?

Think before you act.

Best,
Prashant

Dear All,

Please advise me. If the unit was closed in 2002 and the company does not have any relevant documents to show, how will I close this ESIC code?

Zulfi

Dear Ramesh,

In the case of a company/firm, the following documents may be evidence for the closure of your ESI code No:

01. Proof of Sale of your machinery;
02. Full & final Settlement of workers along with evidence, such as the acquittance of all the discharged employees towards full and final settlement;
03. Electricity Connection surrender;
04. Return of I.T. dept. until the date of closure;
05. Return of Sales Tax Department;
06. Telephone connection surrender;
07. Closing of Bank Account;
08. In the case of a Partnership firm, Dissolution Deed;
09. In the case of a Joint Stock Company, intimation to the Registrar of Companies;
10. Surrender of Trading License;
11. Dissolution of rental deed.

Hope this is enough to solve the problem.

Can somebody provide me with the draft letter for closure intimation to ESIC? Is the procedure the same for intimating under the CL Act and S&E Act?

Thank you.

Draft letter for closure intimation

First, you need to send the letter to the I.F/D.C.I.F with acknowledgment. Then, send the letter to the ESI/PF Offices with a copy of the above acknowledgment. Please update the bold capital letters.

DATE

To
The Asst Director,
Sub Regional Office,
Employees' State Insurance Corporation,
Address

Dear Sir,
Sub: Suspension of operation – UNIT NAME – Reg.
Ref: Our ESI CODE NO.

We would like to bring to your kind notice that our unit situated at the following address suspended its operation with effect from CLOSED DATE.

FULL ADDRESS OF THE UNIT

Hence, there are no production activities being carried out in the unit. A copy of the letter submitted to the Deputy Chief Inspector of Factories is enclosed herewith for your kind perusal and records.

Thanking you,
Yours truly,
Encl: a/a.
CC to: ESI Local office,

Regards,
Suresh Babu
[Phone Number Removed For Privacy Reasons]

Please send a covering letter and deed of dissolution for the partnership firm for EPF & ESIC department. It is very urgent for submission.